From a broken arm or leg to a spinal cord injury or brain injury, the costs of emergency room visits, surgeries, post-acute care and long-term rehabilitation can take a financial toll on you and your family. The cost of severe or catastrophic injuries can be thousands to millions of dollars – PIP coverage protects you. Each day, on average, six people suffer serious injury in a crash on Michigan roads. Will drivers or their loved ones have the coverage they need?

Under these amended laws, policyholders have choices to purchase Personal Protection Insurance (PIP) coverage that is unlimited, capped at $500,000, $250,000, or to opt out and rely on health insurance coverage if auto accidents are not excluded. Those on Medicare have an option to opt out of PIP medical coverage all together, whereas those on Medicaid can purchase a PIP coverage policy capped at $50,000.

Michigan auto policy holders are presented with six levels of Personal Injury Protection, or PIP, coverage. Every decreased amount of coverage comes with increased risks for you and your loved ones – financially and for the ability to access care for the duration of your injury.

• Unlimited/Lifetime coverage (per person/per accident)

• Up to $500,000 in coverage (per person/per accident)

• Up to $250,000 in coverage (per person/per accident)

• Up to $250,000 in coverage with PIP medical exclusion: Available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members provided they have health insurance that will cover auto accident injuries with a deductible of less than $6,000.

• Up to $50,000 in coverage for those enrolled in Medicaid: Available only if the named insured is enrolled in Medicaid and their household members (resident relatives) have another auto insurance policy or health insurance that will cover auto accident injuries with a deductible of less than $6,000.

• PIP medical Medicare opt-out: Available if the named insured has Medicare (Parts A and B) and any of their household members are covered by Medicare (Parts A and B) or have another auto insurance policy or health insurance that will cover auto accident injuries with a deductible of less than $6,000.

OPTIONS

Managed Care – an option that may reduce policy costs but would limit the injured person’s access of care and freedom to choose their medical providers. Victims would need to abide by the rules of the insurance company and their decisions concerning care.

Attendant Care – insurers may offer an option to purchase an attendant care rider to purchasers of $500,000, $250,000 or $50,000 PIP policies. The rider will provide coverage for attendant care in access of the applicable limit.

CONSEQUENCES FOR INJURED CRASH VICTIMS AND AT-FAULT DRIVERS WHEN MEDICAL EXPENSES EXCEED BENEFIT COVERAGES

Injured persons who incur medical expenses more than their PIP coverage can:

1.) sue the at-fault driver (if there is one)

2.) pay out of pocket

3.) declare bankruptcy

4.) attempt to qualify for medical coverage through some kind of government program such as Medicaid.

At-Fault drivers who cause victims to incur medical expenses exceeding their coverage limits will be personally and financially responsible for all excess medical costs. This liability didn’t exist prior to the 2019 law change. Policy holders will need to purchase as much liability coverage as they can afford to protect themselves from this risk.

BEWARE – it is your responsibility to notify your insurance company within 30 days if you lose your qualified health coverage. If you fail to notify them after 30 days, you would not be entitled to PIP medical coverage.

Side-by-side Comparison of Options and considerations